19.12.2022

HOW TO CLAIM CHILD TAX BENEFITS

Until the end of December, parents of children and children with disabilities can benefit from tax relief through their employer in the main employment relationship. For this purpose, they must submit the relevant declaration to him by December 31 of this year. In this case, the employer can reimburse them until the end of January 2023 the withheld tax for 2022, the NRA states.

The calculation of the amount to be received is based on the taxable income of the parents in 2022, and they will receive up to BGN 600 for one child, up to BGN 1,200 for two and up to BGN 1,800 for three or more children. For raising one disabled child, the reduction for this year on the annual tax base is in the amount of BGN 12,000, with the amount to be received being up to BGN 1,200.

Parents of children with 50 and with more than 50% disabilities are entitled to use both tax benefits. For example, for raising a child who is disabled, the parent has the right to tax relief for children in the amount of BGN 6,000 (amount to receive up to BGN 600) and to tax relief for children with disabilities in the amount of BGN 12,000 (amount for receiving up to BGN 1,200). The two tax reliefs are added together, so their total amount can reach up to BGN 18,000 (amount to receive up to BGN 1,800).

In addition to an employer, tax relief can also be enjoyed by submitting an annual tax return to the National Revenue Agency within the period from January 10 to May 2, 2023, and the sums of money will be refunded after verification by the revenue agency within 1 month after the submission of the declaration.

Individuals, including sole traders, who have no income in 2022 or have received non-taxable income, such as maternity and unemployment benefits for example, as well as people with only income subject to final and/or patent tax, cannot benefit from reliefs, but this can be done by the other parent, the NRA reminds.

In the event that the amount of taxable income of one parent is not sufficient for the use of the full amount of the tax relief, the other parent can submit a declaration to the National Revenue Agency for the use of the remainder of the tax relief. The tax relief can also be used for a child who has reached the age of majority or was born in 2022.

One of the most important requirements for the application of the reliefs is that the persons do not have public obligations subject to enforcement. The NRA advises citizens to check their tax account online for liabilities with a personal identification code before using tax relief to avoid inconvenience.

The conditions for using the tax relief for children and children with disabilities are described in detail on the NRA website and the department's Facebook page. Consultations on these issues can be made with the Information Center of the NRA on phone: 0700 18 700 and email: infocenter@nra.bg.